What is Bitcoin?

Bitcoin (BTC) is the world's first cryptocurrency. It is built on distributed ledger (blockchain) technology and uses a proof-of-work (PoW) mechanism. Unlike traditional currencies, it is not backed by any central bank or government. Bitcoin was founded by Satoshi Nakamoto, a pseudonym for an individual or group, who published the white paper on October 31, 2008. It is currently the world’s largest cryptocurrency and has maintained market dominance for the past decade.

A Brief History of Bitcoin

The first Bitcoin was created by Nakamoto on January 3, 2009. Initially, it was mined by a small group of tech enthusiasts. The first trading markets for Bitcoin emerged in July 2010, with prices ranging from $0.0008 to $0.08. Around this time, Nakamoto transferred control of the code repository and the network alert key to Gavin Andresen, who then became the lead developer at the Bitcoin Foundation. Since then, thousands of developers have contributed to improving Bitcoin's code. Over the last decade, Bitcoin's popularity has grown significantly, with more individuals, companies, and even countries accepting its use or holding it on their balance sheets.

How Does Bitcoin Work?

Bitcoin introduced a new type of currency that is created and tracked on a public ledger called the blockchain. This system is not controlled by a central authority like a company or a government. Instead, everyone who contributes the computational power to maintain the network keeps a record of all Bitcoin transactions. In return, these participants can earn Bitcoin through a process called mining. Mining involves validating transactions and adding them to the ledger by solving complex puzzles, a method known as the proof-of-work (PoW) consensus algorithm.

What is Bitcoin Used For?

Bitcoin functions as a digital currency for peer-to-peer electronic transactions. It can be traded for goods or services with vendors who accept it as a form of payment. Bitcoin pioneered the cryptocurrency market, which is an expanding collection of digital assets that can be sent and received by anyone, anywhere in the world, without the need for intermediaries.Read more: https://crypto.com/bitcoin